Overview

• The SEC approved in-kind creation and redemption for all spot Bitcoin and Ethereum ETFs, allowing authorized participants to exchange shares directly for underlying tokens.
• The shift from a cash-only model cuts transaction costs, minimizes tax liabilities and improves price tracking for institutional investors.
• Chair Paul Atkins described the move as part of a “fit-for-purpose” regulatory framework aimed at treating crypto markets like traditional asset classes.
• Regulatory updates also greenlight mixed BTC-ETH exchange-traded products, standard and FLEX options listings, and raise ETF options position limits to 250,000 contracts.
• Bloomberg analysts say the in-kind approval is likely to accelerate institutional inflows and set a precedent for future altcoin ETF filings.